TC 971 Action Codes Explained: The Miscellaneous Code That Means Almost Anything

If there is one code that frustrates people more than any other, it is TC 971. It shows up on almost every account that has had any activity. It is zero dollars. And the explanation next to it can be anything from "notice issued" to "installment agreement established" to "amended tax return or claim forwarded for processing."

That is not the IRS being vague. It is how the code works.

What TC 971 is

Document 6209 titles TC 971 "Miscellaneous Transaction" and says it "performs different actions based on the Action Code which are listed separately." Its reversal is TC 972, which 6209 says is "used to reverse TC 971." Many action codes note "also for TC 972 (reversal)."

So the useful unit of meaning is not TC 971. It is TC 971 plus its action code. Taxpayer transcripts usually show the meaning in words rather than printing the action code number, but the explanation text maps to an action code from the Document 6209, Section 8C list.

The action codes you are most likely to see

That is a fraction of the list. Document 6209 runs through hundreds of action codes, many of them for business accounts or internal accounting. The ones above are the codes that most often explain something on an individual account.

Notice codes

Many TC 971 lines simply record that a notice went out. The National Taxpayer Advocate's transcript examples include a TC 971 described as "Notice Issued" with a notice number. When a transcript says "notice issued," it is telling you the IRS sent you something on that date.

Treat those lines as a mail log. If you see a notice issued line and you do not have the notice, get it. Notices carry deadlines, and the deadline usually runs from the date on the notice, not from the date you found out about it.

Collection Due Process codes

The action codes around Collection Due Process deserve special attention because they mark legal deadlines.

Document 6209 lists action code 069, "Due Process Notice was issued," with 066 for a signed return receipt, 067 for a refused or unclaimed delivery and 068 for an undeliverable notice. Under IRC 6330(a), the IRS must give notice of the right to a hearing not less than 30 days before the first levy for a tax period, and the hearing request must be made during that 30-day period. Lien notices have their own codes: action code 252 for a lien CDP notice sent, with 253 and 254 for undelivered and unclaimed lien notices.

When a timely hearing request is received, Document 6209 lists action code 275 and says it "will exclude module from selection by automated levy programs." Action code 276 records a CDP issue resolved by ACS or Field Collection without going to Appeals, and 277 records that Appeals issued a determination letter. Equivalent hearings use 278, 279 and 280, and 6209 notes that an equivalent hearing receipt "will not exclude module from automated levy processing."

Under IRC 6330(e)(1), a timely hearing request suspends the levy actions at issue and the running of the collection period while the hearing and any appeals are pending. Those action codes are how the transcript shows that suspension starting and ending.

Installment agreement codes

Action code 043 records a pending installment agreement. Action code 063 records an installment agreement with the failure-to-pay penalty at one quarter percent, the reduced rate under IRC 6651(h). Action code 163 records that the account is out of installment status. Action codes 082 and 083 record origination and reinstatement user fees. All of these are covered in Installment Agreement Codes.

Amended return routing codes

When you file an amended return, a TC 971 often shows where it went. Document 6209 lists action codes 010 (Accounts Management), 012 (Collection), 013 (Examination), 014 (Statute Control), 015 (Underreporter) and 120 (Submission Processing). It also says TC 977 is generated when action code 010 or 013 is input. See TC 977 and TC 976.

Identity theft codes

The IRM's transcript procedures list the individual identity theft indicators the transcript system recognizes: action code 501 for taxpayer-identified tax-related identity theft, case resolved; 506 for IRS-identified tax-related identity theft, case resolved; 522 for a pending claim of identity theft; 524 for a deceased taxpayer with a locked account; and 525 for employment-related identity theft involving an ITIN and SSN mismatch. Document 6209 adds 504, taxpayer self-identified identity theft with no tax administration impact, and 505, data loss.

If any of these appear, the account is in, or has been through, identity theft processing. That affects how transcripts are produced and how the account is worked.

Joint account and innocent spouse codes

Several action codes split or flag joint liabilities. Document 6209 lists action code 065 for a request for innocent spouse relief on Form 8857 received, which it says generates a freeze, and a TC 972 used when the claim is closed. Action codes 103 through 109 cause the creation of a mirrored MFT 31 module (or MFT 65 in some cases) for situations such as individual assessments on a joint account, an innocent spouse case, a taxpayer assistance order, one spouse requesting an installment agreement, one spouse requesting a Collection Due Process hearing, or one spouse being currently not collectible.

When you see these, the IRS is treating the spouses separately for at least some purpose. The balance on the joint module may not tell you what the IRS is collecting from you individually. Ask for the MFT 31 transcript as well.

Levy program codes

Some action codes record that automated levy programs touched the account. Document 6209 lists action codes 060, 061 and 062 for the Bureau of the Fiscal Service continuous levy program, including a federal payment identified in the Federal Payment Levy Program, and action code 169 for a Federal Payment Levy Program intent to levy notice issued, CP 91 on individual accounts. It also lists action code 601 for the Alaska Permanent Fund Dividend levy program and 602 for the Municipal Income Tax Levy Program. Action codes 273 and 274 reflect the date of a levy and the date of a seizure.

Paired with the designated payment codes on the payment lines, these action codes let you reconstruct an enforcement history from the transcript alone: which program was used, when the notice issued and when money was taken. See Payment Codes on Your Transcript.

Passport codes

Two action codes connect to the passport certification program for seriously delinquent tax debt. Document 6209 lists action code 642 for a mandated reversal of, or exclusion from, passport certification, and action code 644 indicating the IRS has requested that the Department of State exercise its authority regarding a passport. If either appears, the debt has been flagged in a way that affects travel documents, and that is a reason to act quickly.

Reading a TC 971 correctly

• Read the explanation text, not just the code.
• If the text is generic, ask the IRS for the action code.
• Check for a TC 972 on the same date and action code, which reverses it.
• Treat notice codes as a mail log and match each to a document.
• Treat CDP and installment codes as deadline and status markers.

When you call the IRS about a TC 971, give the date and the explanation text exactly as it appears. The employee can see the action code on their screen and tell you what it refers to. That one detail turns a vague conversation into a specific one.

A TC 971 is never just a TC 971. It is a sticky note the IRS left on your account. The action code tells you what the note says.